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Home / Business / Huawei calls United States move to add more affiliates to Entity List & # 39; unjust & # 39;

Huawei calls United States move to add more affiliates to Entity List & # 39; unjust & # 39;



The US government's decision to add more of Huawi's affiliates to a blacklist is "unfair" and "politically motivated" and will not help the country advance its technological leadership, the Chinese telecommunications giant said in a statement.

U.S. Commerce Secretary Wilbur Ross announced Monday that it extended another 90 days with a temporary reprieve for Huawei to continue doing business with US companies. The deadline was Monday. However, the Bureau of Industry and Security (BIS) added another 46 Huawei affiliates to the blacklist.

"These actions violate the basic principles of free market competition. They are of no interest, including US companies," Huawei said in a statement Tuesday.

In May, Huawei was put on the US unit list, which restricts US companies from doing business with the Chinese company. Shortly thereafter, the government offered a 90-day delay to Huawei that allowed US companies to continue to sell limited and specific products to them.

"As we continue to encourage consumers to switch from Huawie's products, we recognize that more time is needed to prevent any disruption," Ross said in a statement.

Some US rural mobile networks use Huawei equipment while some US technology component companies rely on a significant portion of the revenue from the Chinese giant.

Ross reiterated his concern that Huawei poses a threat to national security. The United States has claimed that Huawei's equipment could be used as a back door by the Chinese government to spy on Americans, the company has repeatedly denied.

& # 39; unjust & # 39;

On Tuesday, Huawei called Washington's decision to add more of its affiliates to the entity list "politically motivated."

"Attempts to suppress Huawi's operations will not help the United States achieve technological leadership," Huawei said in a statement. "We ask the US government to end this unfair treatment and remove Huawei from the entity list."

The company added that the decision "will not have a material impact" on the business. Huawei Chairman Liang Hua said "neither production nor shipment has been canceled, not for a single day."

Nevertheless, earlier this year, Huawei lowered its revenue forecast, forecasting a $ 30 billion hit to revenue over the next two. year.

At least it is clear to me that the President looks at Huawei as a negotiating piece and a pressure point for a trade agreement …

James Pethokoukis

Dewitt Wallace Fellow at the American Enterprise Institute [1

9659016] Huawei has focused on to try to develop more of the core technology for which it currently relies on US companies. The telecommunications equipment manufacturer continues to design its own processors and modems for smartphones.

It recently released its own operating system called HarmonyOS, though it currently uses Google's Android for smartphones and Microsoft's Windows for laptops.

Richard Yu, CEO of Huawei's Consumer Business, said last week that if the company was permanently cut off from Google, it could switch to the new operating system "immediately."

Huawei a & # 39; negotiation chip & # 39;

Huawei has been caught up in the broader US-China trade war. President Donald Trump appears to have sent mixed signals in recent months about the fate of Huawei in the United States

In May, Trump said it was "possible that Huawei would be included in a trade agreement."

But just this weekend, the US president said he did not want to do business with Huawei "because it is a national security threat."

Some experts have suggested that the Chinese technology company is being used as a "bargaining chip" in the US-China trade war.

"At least it's clear to me that the president sees Huawei as a bargaining chip and a pressure point for a trade deal … it's certainly those in the administration who want to kill this company, and they look at it as a kind of opening shot in a protracted Cold War with China, "James Pethokoukis, Dewitt Wallace Fellow at the American Enterprise Institute, told CNBC's" Stock Exchange "on Monday. "I just don't see evidence that Trump thinks so."

"It is the president's problem … if he calls it right now that they are a national security issue, if that is the case, then it is difficult to come to a trade agreement that does not impose any kind of restriction on Huawei. It is hard to see the playoffs there, "Pethokoukis said.

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